| A hardship letter is the most important piece of | | | | their lender. |
| document required to apply for loan modification. | | | | In the actual writing, the first sentence should tell |
| Its substance and validity will make or break an | | | | why such letter is written. This may include the |
| attempt for a loan workout. This is a letter | | | | explanation that after all possible ways were |
| basically contains an explanation why there is a | | | | exhausted there’s still failure to meet with |
| difficulty of settling mortgage amortization. It is | | | | mortgage payments. Much of this should be in the |
| only fitting to compose this letter carefully. | | | | first paragraph of the letter. |
| When writing a hardship letter, it’s important | | | | The second paragraph should describe the events |
| to remember to keep it short, concise but not | | | | that affected failure to make regular payments. |
| arrogant. A one to two pages maximum letter is | | | | This description should be done tastefully without |
| strongly advised. Take note that a lender does | | | | being overly dramatic. Overly thought out |
| not have the luxury of time to read a novel-like | | | | explanation might appear deliberate and fake. |
| hardship letter. This letter serves as outline of | | | | Additional paragraph might be added to explain the |
| one’s difficulty to pay for periodic | | | | intent for loan modification pursuant to financial |
| amortization, so it should be direct. | | | | difficulty. |
| Like any letter, begin with a proper salutation, use | | | | It is also wise to give approximate, if not exact, |
| font type and size reasonably easier to read. | | | | duration of the hardship period. This will be the |
| Letter size or 8.5 by 11 inches will be the | | | | basis for the mortgage lenders to get a head |
| paper’s size; otherwise an A4 sized paper can | | | | start with its response for loan modification. The |
| be used. | | | | last paragraph should emphasize the desire to |
| Bear also in mind that there is a clear definition of | | | | settle the loan, but asking for leeway, for the |
| the term "hardship" for availing loan modification. | | | | time being. |
| Such hardship should fall under listed by mortgage | | | | Then end the letter with parting words hoping for |
| lenders. Such as bankruptcy of business, | | | | a loan modification, which will be favorable to both |
| immediate relocation, or divorce from a spouse | | | | parties. It is also wise to mention about |
| who is the co-borrower. There are still more to | | | | attachments to the hardship letter, which are |
| this, to be sure homeowners should check with | | | | proofs of financial difficulty claim. |